TEN WAYS TO LOSE YOUR LICENSE

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TEN WAYS TO LOSE YOUR LICENSE
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PRESENTED BY

• Eileen W. Mundorff, AIRC, ACS
• Consumer Affairs Officer
• Idaho Department of Insurance

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1. IGNORE THE DOI
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41-247 Power of Inquiry
The director shall have power to direct an
inquiry in writing to any person subject to his
jurisdiction with respect to any insurance
transaction or matter relative to a subject of
insurance resident, located, or to be performed
in this state. The person to whom such an inquiry
is addressed shall upon receipt thereof promptly
furnish to the director all requested information
which is in his possession or subject to his
control.
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2. DIVERT PREMIUM
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41-1024Premium Accounting
Any producer who, not being lawfully entitled
thereto, diverts or appropriates to his own use
such trust or fiduciary funds or any portion
thereof... shall upon conviction be guilty of a
felony.
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41-1325 Borrowing Money from Clients

• An insurance producer who borrows money,
  securities or anything of value from a client or
  customer shall complete a written loan
  agreement All parties to the loan must sign the
  loan agreement and must receive a copy of the
  loan agreement

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3. DONT REPORT PREMIUMS TO INSURER
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41-1323 Prohibited Premiums or Charges
No person shall wilfully collect any sum as
premium or charge for insurance, which insurance
is not then provided or is not in due course to
be provided by an insurance policy issued by an
insurer as authorized .
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41-1324 Report Exact Consideration to Insurer

• Every agent, broker or other insurance
  representative shall report to the insurer the
  exact consideration charged for any insurance
  policy or contract. If any policy, contract or
  certificate of insurance is issued by the agent,
  broker or representative, such exact
  consideration shall also be shown therein.

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• 4. MAKE FALSE STATEMENTS

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41-1305 Twisting

• No person shall make or issueany written or
  oral statement misrepresenting or making
  incomplete comparisonsto induce the
  policy-holder to lapse, forfeit, surrender,
  leave, retain, exchange, or convertany insurance
  policy.

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• 5. REBATE

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41-1314 Rebates Illegal Inducements

• (1) No person shall knowingly make... other
  than as plainly expressed in the contract
  issuedpay or allowas inducement any rebate of
  premiums payable on the contract.. or of any
  commission or any special favor or advantage.

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41-1314 Rebates Illegal Inducements
(continued)

• (3) Nothing in this section shall be construed
  as prohibiting producers who are marketing life
  insurance, property insurance or casualty
  insurance, from providing a policyholder or
  prospective policyholder any prizes, goods,
  wares, merchandise, articles or property of an
  aggregate value of 50.00 or less.

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• 6. USE FALSE INFORMATION

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41-1303 Misrepresentation or False
Advertising of Policies

• (1) No person shall make, issue, circulate
  any estimate, circular, or statement
  misrepresenting the terms of any policy issued
  or the benefits or advantages promised or make
  any misleading representation as to the financial
  condition of any insurer

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41-1303 Misrepresentation or False
Advertising of Policies (continued)

• (4) For reasonable cause the director may
  require any insurer or agent using or proposing
  to use in this state a prospectus, offering
  sheet, or other sales literature or printed sales
  aids in the solicitation of life or disability
  insurance to file the same with him for review.

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41-1304 False Information and Advertising with
Respect to Insurance Business
No person shall make, publish, disseminate,
circulate, or placed before the public in a
newspaper, magazine or other publication, or over
any radio or television station any statement
with respect to the business of insurance which
is untrue, deceptive or misleading.
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7. ACCEPT BUSINESS FROM AN UNLICENSED INDIVIDUAL
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41-1016 Administrative Penalty Suspension,
Revocation, Refusal of License
(l) Knowingly accepting insurance business from
an individual who is not licensed.
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8. FAIL TO MEET CE REQUIREMENTS
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41-1013(7) Continuation Expiration of
Licenses Continuing Education Statement
(7) Failure of the licensee to comply with any
applicable additional education requirements
prescribed by the director by rule by the
expiration date of the license shall be grounds
for the director to refuse to continue any such
license.
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• 9. SELL UNSUITABLE ANNUITIES TO SENIORS

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41-1940 Suitability of Annuity Sales to Senior
Consumers

• In recommending to a senior consumer the
  purchase of an annuity or the exchange of an
  annuity, the insurance producer shall have
  reasonable grounds for believing that the
  recommendation is suitable for the senior
  consumer

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10. REPRESENT AN UNAUTHORIZED INSURER
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41-1201 Representing or Aiding Unauthorized
Insurers Prohibited
No person shall in this state directly or
indirectly act as an agent for, or otherwise
representany insurer not then authorized to
transact such insurance in this state.
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For Further Information

• www.doi.idaho.gov a Laws/Rules/Bulletins a Idaho
  Insurance Code
• Call the Department of Insurance
• Boise 334-4250 (800-721-3272)
• Coeur dAlene 208-666-6850
• Pocatello 208-236-6411